Pacquiao firm plans to put up GenSan ecozone

(2nd update) MANILA, Philippines - A company owned by Filipino boxing champion Manny Pacquiao will develop a 400-hectare property in General Santos City and transform it into a special economic zone. The company, which will invest some P1.217 billion for the project, will also seek tax incentives from government, the Philippine Economic Zone Authority (PEZA) said. The project is up for approval next month, PEZA director-general Lilia de Lima said. If approved, the project will enjoy fiscal incentives, possibly allowing it to enjoy tax breaks anywhere from five to 15 years. Located at Balsinang, Olympog in General Santos, Pacquiao’s hometown, the property is registered under Manny Pacquiao Heights Development Corp. (MPHDC). The project’s first 200 hectares will be developed into different types of economic zones as part of its overall aim of becoming a well-planned community. Seventy hectares will be allotted for tourism, 65 for information technology, 40 for retirement, and 30 for medical tourism, de Lima said. The Pacquiao-owned company is currently in discussion with two foreign firms, both of which have expressed interest in developing world-class medical tourism facilities, de Lima added. These two firms include the New York-based Bio City Development Co., which specializes in the development of the international cancer centers in Dubai, Europe, Vietnam, Hong Kong, and New York. The proposed ecozone may also allow the establishment of a Medical University, which plans to offer high-end facilities for patients, visitors, and companions. The facility will also include an international Medical Convention Center, an outdoor sports and recreation park, and retail and commercial strips. MPHDC is also expected to spend P1.193 billion to develop the land area with the remaining P24.3 million used to pay for the land’s acquisition. Some P730.439 million will be sourced from the company’s internally-generated income while remaining costs – amounting to P500 million – may come from bank loans. MPHDC is currently processing its registration with the Securities and Exchange Commission (SEC). Incorporators include Pacquiao, Jinkee J. Paquiao, Rogelio D. Paquiao, Edilberto L. Jamora, Helen DC Nocom, and Yan V. Amante. Next: Pacquiao representatives hold meetings with socioeconomic planning agency Pacquiao representatives hold meetings with socioeconomic planning agency Two MPHDC representatives have held meetings with Socioeconomic Planning Secretary Ralph Recto last month to discuss infrastructure projects in General Santos. Pacquiao’s company is eyeing projects involving “power, water, and infrastructure," according to an April 17, 2009 letter addressed to Recto. The investments seek to improve General Santos’ tourism industry, said the letter which was signed by Amante. Besides intending to enhance the city’s agricultural output by providing “farm to market roads," the company is also seeking government assistance to convert land for its “tourism-related projects." Company representatives were then referred to the Philippine Economic Zone Authority (PEZA) for proper guidance, Recto said. In early May, Pacquiao earned $12 million, just $4 million lower than the $16-million foreign direct investments received by the Philippines in February, as reported by the Bangko Sentral ng Pilipinas (BSP). Earlier, Pacquiao expressed plans to run for a political post in Saranggani province. In 2007 Darlene Antonino-Custodio beat Pacquiao to be GenSan's Representative to Congress. Pacquiao reportedly spent more than P100 million for his campaign. - With Cheryl M. Arcibal, GMANews.TV